Thermo Fisher Scientific Inc (TMO)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	30,929,000	31,590,000	23,437,000	23,834,000	16,845,000	15,654,000	22,878,000	21,517,000	21,346,000	22,185,000	21,772,000	19,590,000	23,885,000	18,988,000	14,966,000	12,719,000	11,328,000	11,217,000	11,069,000	10,984,000
Revenue (ttm)	US$ in thousands	41,415,000	42,229,000	42,518,000	42,979,000	44,225,000	42,978,000	41,676,000	40,005,000	37,933,000	38,365,000	37,540,000	35,169,000	31,689,000	28,090,000	25,821,000	25,176,000	25,008,000	24,686,000	24,336,000	24,109,000
Gross profit margin		74.68%	74.81%	55.12%	55.45%	38.09%	36.42%	54.89%	53.79%	56.27%	57.83%	58.00%	55.70%	75.37%	67.60%	57.96%	50.52%	45.30%	45.44%	45.48%	45.56%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $30,929,000K ÷ $41,415,000K
= 74.68%

Thermo Fisher Scientific Inc.'s gross profit margin has shown a declining trend over the past eight quarters, from 48.37% in Q1 2022 to 39.90% in Q4 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold. The lower gross profit margin may be attributed to various factors such as increased competition, rising production costs, or pricing pressures. Management should closely monitor and analyze the drivers behind this trend to identify potential areas for improvement in operational efficiency and pricing strategies, ultimately aiming to enhance profitability and shareholder value.